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Differences in the development of Artificial Intelligence in Europe and the U.S.

Differences in the development of Artificial Intelligence in Europe and the U.S.

By Jaime Martín Borregón

Artificial Intelligence (AI) is becoming a crucial factor in economic and social development globally, and the differences in the approaches of Europe and America, mainly the United States (US) are notable. Both continents are developing their own AI models, each with distinctive characteristics in terms of political, economic and cultural issues.

  • Regulatory approach: Europe, ethical and regulatory vs. the U.S., market based

The European Union seeks to establish a single regulatory approach prioritizing ethics, privacy and human rights. An example of this is the approval in April 2024 of the Artificial Intelligence Act, which classifies AI systems according to their level of risk and establishes a series of requirements for their development and use. For example, biometric categorization based on sensitive characteristics, emotion recognition in the workplace, and AI that manipulates human behavior or exploits vulnerabilities. Europe is focused on a quest for secure, transparent and reliable AI which in turn may slow down the process.

On the other hand, the US takes a more flexible and market-driven approach. It is characterized by greater opacity in the development of AI systems, generating criticism about the lack of ethical considerations. By moving forward without so many restrictions, they gain some advantage in speed of development, but with a risk of abuse.

  • Innovation and competitiveness: economic potential in Europe vs. technological dominance in the USA

It is estimated that, if Europe could match the US pace of AI development, it could add as much as €3.6 trillion to its economy by 2030. However, this gap between Europe and its competitors continues to widen as only a small fraction of unicorns and startups are European. Europe has a strong research ecosystem and top universities in AI, but insufficient capital and presence of tech giants to bring these ideas to market.

However, the United States is a leader in technological innovation in the field of AI thanks to the concentration of advanced technology companies and venture capital. At the same time, this entire domain poses risks related to the lack of adequate regulation that could lead to significant ethical and social risks.

  • Different models

In Europe, the presence of open AI stands out, i.e. there is the possibility of accessing and modifying the model, which could serve as a basis for the creation of new models external to the original one.
In turn, in the United States, closed models such as OpenAI and Google predominate, protecting their technological advances and less transparency.

  • Future challenges

Both regions face unique challenges in terms of both regulation and business growth. Undoubtedly, the biggest challenge facing both is the emergence of China as a major powerhouse in AI development. The country is committed to being a world leader by 2030 thanks to massive state support and access to large volumes of data that has allowed it to develop powerful models such as “Deepseek”, a Chinese company that revolutionized the sector by competing with U.S. models at a lower cost.

While the United States is opposed to regulated AI, Europe advocates a controlled and equitable development. In turn, China is beginning to develop its potential with the possibility of becoming the benchmark country in the development of Artificial Intelligence in the coming years. We will see who leads the race for the advancement of AI, and we will observe above all how AI becomes a tool at the service of human beings and not an end in itself.